Nanotechnology

Global Investor Focus 

Expert know-how for Credit Suisse investment clients June 2005 

NANOTECHNOLOGY 

A big future for small things? // Karl Knop 

Round table discussion // Heinrich Rohrer, Rita Hofmann, Hans-Joachim Günterodt,

How big is a nanometer? 

1 nanometer is 0.000 000 001 meters. 

That is one billionth of a meter. 

The relationship between 1 meter and 

1 nanometer is the same as the relationship 

between Ø earth : hazelnut. 

CMore information on page 23

One object, four different worlds! // Tip of a pencil by eye, light microscope, 

scanning electron microscope and by atomic force microscope. 

Magnification factor: 

10× 100× 10,000×

CMore information on page 8

GLOBAL INVESTOR FOCUS 

Nanotechnology—06 

Editorial 

“There’s plenty of room at the bottom.” // Does nanotechnology 

hold the key to progress in the 21st century? 

Perhaps. The core technology is still only in its infancy – even 

though products based on nanotechnology are already available on 

the market. And even though significant amounts of public and private 

money are being channeled worldwide into nanotechnology research 

and applications. 

“Nano” is the word on everyone’s lips. “Nano” is the way forward. 

So is “nano” a synonym for the future? A phenomenon? A blessing for 

humanity? Or is “nano” nothing more than hype? A curse? An illusion? 

A dream that will burst like a bubble? 

That’s what we want to find out. And that’s why we commissioned 

this report. 

In order to meet the information needs of our clients, the bank has 

begun to cast a critical eye over nanotechnology. Because it is our job 

to provide our clients with the right advice at the right time. One of our 

main tasks is to identify investment trends and new markets at an 

early stage, to realistically assess the various possibilities, and to weigh 

up the opportunities and risks involved. Which also answers the question 

as to why a bank should be looking so intensively at nanotechnology 

at this time. 

Just one more thought. Isn’t it true to say that we Swiss have a 

special fondness for small things? The precision engineering which 

finds expression in the Swiss watchmaker’s craftsmanship is famous 

throughout the world. And it was a Swiss scientist, Heinrich Rohrer, 

who together with his German colleague, Gerd Binnig, developed and 

built the first scanning tunneling microscope – a great achievement, 

for which both men received the Nobel Prize. 

“There’s plenty of room at the bottom.” This sentence, which was 

spoken by Richard Feynman in 1959, marks the birth of nanoscience as 

we know it. We see it as our task to get to the bottom of the matter. 

Arthur Vayloyan 

Member of the Executive Board of Credit Suisse 

Head of Private Banking Switzerland

p Glossary 

Biochip: A prefabricated plate, which together with a reacting 

instrument performes biochemical tests. 

Biological sensors: Sensors are devices that respond to thermal, 

electromagnetic, mechanical, or other physical stimulus by producing 

a signal of electrical nature. Biological sensors measure 

the number of particles in the vicinity of the sensing element. 

Bit (abbreviated b): is the most basic information unit used in computing 

and information theory. With two valves, 0 or 1, 8 bits 

form a byte (abbreviated B ) and can assume 2 8 = 256 values. 

Bottom-up approach: Building nanostructures atom by atom, or 

molecule by molecule. 

Electron: A negative elementary-charged particle that orbits the 

positively charged nucleus of an atom. 

Ion: An electrically charged atom or molecule. Ions may be negatively 

or positively charged, either by an additional or a missing 

electron. 

In situ (“in place” in Latin): A term used in biology. To examine the 

phenomenon exactly in place where it occurs (without removing 

it in some special medium, etc.). 

Macroscopic: Large enough to be visible to the naked eye, typically 

longer than a tenth of a millimeter. 

MEMS: Micro-Electrical-Mechanical Systems (MEMS) is the integration 

of mechanical elements, sensors, actuators, and electronics on 

a common silicon substrate through microfabrication technology. 

Microtechnology: Technology dealing with matter on the size scale 

of microns (1 millionth of a meter ). Microtechnology can refer to 

microelectronics, MEMS, micro-optics or any technology that 

manipulates matter on a micron scale. 

Nanometer (abbreviated nm): A millionth of a millimeter. 

Nanoparticles: Particles with a size of 0.1 to 100 nanometers. 

Nanoscience: The scientific discipline seeking to increase knowledge 

and understanding of nanoscale phenomena, i.e. science 

on the scale of 0.1 nm to 100 nm. Nanoscience encompasses 

the traditional disciplines of physics, chemistry, biology and 

engineering. 

Nanotechnology: The application of nanoscience in order to control 

processes of the nanometer scale, between 0.1 nm and 100 nm. 

Photon: Discrete unit of electromagnetic radiation. Behaves not as 

a wave only, but also like a particle (without mass). 

Photovoltaic cells: A photovoltaic cell is a device that turns light 

into electric energy. 

Quantum mechanics: The well-tested theory of the behavior of 

matter on the microscopic scales of atoms and computer chips, 

where the constituents of matter behave simultaneously like 

waves and particles. 

Quantum states: Matter at the scales of atoms and molecules, 

assumes well-defined discrete states. Any changes and reactions 

can occur only by jumps from one into another quantum 

state, whereby a discrete amount of energy may be emitted or 

absorbed by electromagnetic radiation in a form of a photon. 

Top-down approach: Downsizing materials from a larger scale to 

nanometer size.

p Links 

Avalon Photonic Inc 

www.avap.ch 

CDT Cambridge Display Technology 

www.cdtltd.co.uk 

Concentris GmbH 

www.concentris.ch 

CSEM Inc 

www.csem.ch/fs/nanotech.htm 

Deutschland BMBF 

www.bmbf.de/de/nanotechnologie.php 

EMPA 

www.empa.ch 

EPFL/Institute for Applied Optics 

http://ioa.epfl.ch 

ETH Zentrum 

www.nano.mavt.ethz.ch 

EU 6. Framework Program 

www.cordis.lu/nanotechnology 

Heptagon Oy 

www.heptagon.fi 

Ilford 

www.ilford.com 

Japan National Nanotechnology Institute NRI 

unit.aist.go.jp/nanotech 

Nanosys GmbH 

www.nanosys.ch 

Nano-World Basel 

www.nano-world.org 

NCCR Materials with novel electronic properties 

www.manep.ch 

NCCR Nanoscale Science 

www.nccr-nano.org 

Paul Scherrer Institut 

www.psi.ch 

The Royal Society 

www.nanotec.org.uk/finalReport.htm 

Top Nano21 

www.temas.ch/nano/nano_homepage.nsf 

University of Basel 

www.pages.unibas.ch/zmb 

University of Neuchâtel/IMT 

www-samlab.unine.ch 

USA National Nanotechnology Initiative 

www.nano.gov



Table of contents 

Karl Knop // i4u GmbH 

08 Nanotechnology: A big future for small things 

Billions are invested worldwide to develop the potential of nanotechnology. 

Where is the science heading? 

Expert discussion 

16 Unraveling the big debate over small science 

Four leading experts in the field of nanoscience discuss the future 

of this technology. 

Michèle Luderer // Credit Suisse Publications 

23 It’s a small, small world 

Though invisible, nanotechnology enhances many commercially 

available products. A look at the products of today, tomorrow and 

the future. 

Daniel Huber // Credit Suisse Publications 

30 “Our future inevitably led us to nanotechnology” 

Ilford Switzerland returns to profitability thanks to the 

invention of nano inkjet paper. An interview with Rita Hofmann, 

Head of Research and Development. 

Maria Custer // Credit Suisse 

32 Investing in nanotechnology is its own science 

The better investors understand the impact that nanotechnology will 

have on the economy, the more they will be able to profit from the 

expected changes. 

34 Author bios 

36 Disclaimer/Imprint 

Cover: A droplet of water on a nasturtium leaf doesn’t wet its surface. Instead, it acts as a dust collector, automatically cleaning the surface as it slides off. 

Source: University of Basel/Microscopy Center



Bigger isn’t always better. // Billions of dollars are invested in nanotechnology 

research each year by companies and governments worldwide to substantiate this claim. 

Today, the “technology of the tiny” is still in its embryonic phase, but it harnesses 

huge potential. The benefits of this budding science are already apparent in the fields 

of healthcare, materials, information technology and many more. 

Karl Knop ⁄ nanotechnology expert, i4u GmbH ⁄ ⁄ Editor: Michèle Luderer ⁄ Credit Suisse Publications 

Nanotechnology: A big future 

for small things 

Nanotechnology, a science that deals with objects with the size of 

a few nanometers, is a field that promises astonishing advances in 

every facet of society, from computers, to healthcare, to the environment. 

Today, nanoscience has added more bounce to tennis balls, 

made sunscreen lotions easier to smooth on, and even made trousers 

stain-resistant. The first successes, however mundane, are 

expected to pave the way for more momentous developments, such 

as computers based on fundamentally new physical principles, allowing 

simulations of complex systems such as the human brain. Once 

the technology to build things from the atom up exists, scientists 

should be in a better position to imitate efficient mechanisms existing 

in nature. 

These scientific breakthroughs might seem far-fetched, but 

experts estimate that the move from laboratory demonstrations and 

computer simulations to reality will be made within the next 10 to 30 

years. This rapid development is made possible as a result of the huge 

sums invested into the early stages of research and development by 

governments around the world. The United States, for example, 

invested approximately 1 billion dollars in nanotechnology research 

and development in 2004 alone. That is double the amount invested 

in 2001, when former President Bill Clinton launched the National 

Nanotechnology Initiative (NNI). The United States is not the only 

country to recognize the economic and societal potential of nanotechnology. 

Never in history before has there been such a unique global 

effort in one common theme of research. According to the NNI, 

worldwide government funding has increased to about five times what 

it was in 1997, exceeding 2 billion dollars in 2002. Asian countries, 

including Japan, China and Korea, as well as several European countries, 

have made leadership in nanotechnology national priorities. At 

25 million dollars a year, Switzerland’s investment per capita is high 

by international standards. These governments are digging deep into 

their coffers now, because they are aware of the potential substantial 

returns. The U.S. National Science Foundation has predicted that the 

market for nanotechnology, or products containing nanotechnology, 

will reach 1 trillion dollars in 10 to 15 years. That also translates into 

an estimated 7 million jobs that will be needed to support nanotechnology 

industries worldwide, according to the U.S. National Science 

Foundation. >



Nanotechnology offers the possibility to analyze, manipulate and modify materials at the atomic level and atom by atom. This is a new quality in 

materials engineering with unprecedented potential. / Source: University of Basel – Physics



Super storage from IBM Zurich 

Research Laboratory 

These days, it’s possible to download 

just about anything from 

music to pictures, to games and 

programs on mobile devices, 

such as cell phones and personal 

digital assistants (PDAs). These 

data take up quite a bit of storage 

and manufacturers are working to 

keep up with demands for 

increased capacity demands. As 

current storage technologies are 

gradually approaching fundamental 

limits, IBM explored innovative 

solutions for data storage in a 

system called “millipede.” Using 

nanotechnology, scientists at the 

IBM Zurich Research Laboratory, 

Switzerland, have made it to the 

millionths of a millimeter range, 

achieving data storage densities 

of more than one terabit (1,000 

gigabits) per square inch. This is 

equivalent to storing the content 

of 25 DVDs on an area the size of 

a postage stamp. 

www.zurich.ibm.com 

Source: IBM Zurich Research Laboratory 

Stain-resistant fabrics 

from Schoeller 

Schoeller has been working in 

nano research and development 

since 1998. Using the technology, 

it has created textiles with special 

properties for stain protection 

and oil and water repellence. Fabrics 

finished with NanoSphere 

provide protection from stains of 

all kinds: Even cola, ketchup and 

coffee can easily be rinsed off 

with a little water. Thanks to nanotechnology 

the textile surfaces 

are not only easy to clean, they 

are robust, long-lasting and can 

be laundered less often and at 

lower temperatures. The Nano- 

Sphere finish is suitable for many 

textile applications, including 

outdoor, leisure and sports clothing, 

business suits, protective 

work gear, home furnishing and 

medical applications. Clothing 

manufacturers around the world, 

including Daniel Hechter, 

Mammut, The North Face, and 

Polo Ralph Lauren, are using 

NanoSphere textiles in their production. 

www.schoeller-textiles.com 

Source: Schoeller Textil AG 

Evolution or industrial revolution? 

Nanotechnology, with its promise of making systems that are smaller, 

faster, stronger, better and cheaper to produce, may soon be the 

cornerstone of every manufacturing industry. 

Most industries that depend critically on materials have already 

recognized the importance of nanotechnology for their business. The 

microelectronics industry is among them. The industry, which has a 

50-year history of making things smaller while preserving and improving 

their functionality, believes that breakthroughs in nanotechnology 

are needed for its continued growth. In 1965, computer-processing 

power consisted of a microchip with 30 transistors. Today, chips have 

40 million transistors ranging in size from 130 to 180 nanometers. By 

2016, the Consortium of International Semiconductor Companies 

expects chips to be radically scaled down and to hold billions of 

transistors with the size of only 10 to 20 nanometers. What does this 

mean for consumers? We will benefit from faster computers with 

larger storage capacities. 

While the application of nanotechnology to improve existing 

products has a short history, spanning just two decades, it is gaining 

momentum rapidly. Nanoparticles have been produced in large quantities 

for a long time by making materials smaller and smaller from 

large-scale structures into nanometer-scale structures (the so-called 

“top-down approach”). The process of creating things by downsizing 

into the micrometer scale is called microtechnology. The top-down 

approach came as an evolution of microtechnology. 

Making things smaller while preserving their functionality is 

advantageous. However, this is not the main reason that explains the 

potential of nanotechnology. The attractiveness of small particles at 

nanometer scale is that they behave very differently from the objects 

in our macroscopic world. The reason for that is very fundamental 

and is related to quantum phenomena that explain the behavior of 

atoms and molecules. Particles at nanometer dimensions behave like 

waves, exhibiting “strange” resonances and interacting with other 

particles by exchanging well-defined portions of energy called quantums. 

While common objects from our daily life must be permanently 

fed with energy to be able to move, very small objects may stay 

in a steady state of motion without losing energy over a long period 

of time. Now, new advances in nanotechnology (bottom-up approach) 

add to the “old” top-down approach much deeper understanding and 

predictability. 

A whole range of start-up companies are developing and selling 

novel products used in a wide variety of applications and markets, 

ranging from ultra-high precision robots and novel photovoltaic cells 

that harness solar energy, to flexible displays, and chip-based medical 

sensors. Nanotechnology is not the only key technology of the 

twenty-first century, but due to its inherent multidisciplinary nature,



There are two different approaches in nanotechnology: 

the “top-down” approach, which means downsizing materials from 

a larger scale to the nanometer size, and the “bottom-up” 

approach, which refers to building nanostructures atom by atom 

or molecule by molecule. 

it certainly is laying solid groundwork for solutions to many of the 

urgent questions of the industrialized world. 

p Electronics and information technology: The development of electronics 

and information processing has reached a critical point. The 

chips used today combine hundreds of millions of interlinked elements 

in one chip, however, the miniaturization process has reached 

a point where further developments seem not to be possible without 

a new and different approach. Nanotechnology should provide the 

next leap to make further miniaturization possible. Scientists demonstrated 

that new significant advancements could be made using the 

knowledge provided by nanotechnology, including totally new concepts 

for computing based on quantum devices. 

p Life sciences: To support and improve human health on a global 

scale represents a challenge for the present and near future. Better 

insight and control of processes in the molecular scale are needed 

for this task. Traditionally, this task has been the domain of biochemistry 

and the pharmaceuticals industry. With the advent of nanotechnology, 

totally new approaches to manipulate, modify and eventually 

design and fabricate molecular structures in the atomic scale are 

available today and may ultimately change the whole discipline in the 

long term. Biochemical sensors based on nanodevices have already 

started to revolutionize medical diagnostics. The real impact of nanotechnology 

in life sciences, however, will be far more fundamental, 

introducing completely new methods for influencing and altering the 

basic processes of life. The areas of medicine and pharmaceuticals 

may not be the same again after nanotechnology has entered the 

field. The potential of applying this technology to medicine is huge. 

Many applications, from drug delivery to advanced diagnostics, are 

currently being researched. In the next five years, researches expect 

to make headway in drug delivery and advanced diagnostics. For 

example, introducing nanoparticles in medicines might make them 

more soluble and easier to absorb. Or implanting chips that would 

monitor the level of biochemicals in the bloodstream and release the 

appropriate level of medication, which would greatly benefit insulindependent 

diabetics. 

p Energy and new materials: The generation of mechanical energy 

strongly depends on the availability of suitable materials. Steel was 

virtually the only choice in the nineteenth century. Much stronger and 

lighter materials have been developed since then and used to increase 

efficiency. Many of these new materials owe their outstanding properties 

to their nanoscale crystalline structure. While in the past, 

material processing was based on trial and error, nanotechnology is 

now offering a well-controlled approach. More recently, new materials 

have been discovered, including carbon nanotubes (CNT), which 

exhibit a mechanical strength that is 20 times that of steel and just 

one-sixth the weight. This will enable the construction of cars > 

Mercedes-Benz scratchresistant 

cars 

DaimlerChrysler has developed a 

nanoparticle clear coat for its 

car lacquer that is highly resistant 

to scratching. It contains microscopic 

ceramic particles that form 

a densely cross-linked network 

when it hardens, providing a 

threefold improvement in scratch 

resistance. The effectiveness of 

the technology was demonstrated 

by the results of an extreme 

test conducted in an external laboratory. 

In long-term studies 

involving more than 150 test cars, 

the coating proved glossier 

and more scratch-resistant than 

conventional paint jobs, even 

after years of use. After ten wash 

cycles with a mixture of water and 

fine particulate matter – reproducing 

the wear-and-tear effect of 

some 50 to 100 regular car 

washes – the nano-painted sheet 

metal emerged with approximately 

40 percent greater gloss 

than samples with conventional 

lacquer. 

www.daimlerchrysler.com 

Source: DaimlerChrysler 

Nanotechnology in a nutshell 

p The prefix, nano, comes 

from the Greek “nanos,” which 

means dwarf. 

p Nanotechnology concerns materials 

and working devices 

that are engineered at the scale 

of atoms and molecules. 

p Atomic constructs can be measured 

in nanometers, which are 

one millionth of a millimeter in size. 

p Approximately 3 to 6 atoms 

can fit inside of a nanometer, 

depending on the atom. 

p A human hair is about 

80,000 nanometers wide. 

p Proteins, the building blocks of 

living organisms, are typically several 

nanometers in size. 

p Viruses, which are the smallest 

living organisms, can reach up 

to 100 nanometers, whereas bacteria, 

which do not qualify as 

nano-objects, are up to several 

thousand nanometers in size.



Spheres of polystyrene: Tiny spheres of polystyrene, only a few micrometers in size, may build up in a self-organized manner to form layers, 

one above the other, exhibiting extraordinary optical properties, eventually providing trully three-dimensional bulk materials. / Source: CSEM, Inc. 

Nature demonstrated this long ago: Colorful opal gemstones are the result of a self-organized 

depositing of microscopic particles.



Vertical Cavity Surface Emitting Laser (VCSEL): Semiconductor lasers are omnipresent in modern society. CD and DVD devices 

and many other well-established products depend on them. Such lasers contain nanostructures and their evolution will be strongly influenced 

by nanotechnology. / Source: Avalon Photonics Ltd. 

DVD and CD players are a commodity today. A tiny spot of light from a semiconductor laser 

is used to write and read the information on the disc.



Microbes: The growth of microbes strongly depends on the surface. By offering suitable topographies their presence or absence may be 

controlled. / Source: CSEM, Inc. 

Hip, knee and dental implants are routinely used today to improve the quality of life, 

particularly for elderly people. The critical part in these devices is the interface 

to the body. Proper surface treatment improves the fixation and may greatly enhance the 

lifetime of the implant.



“The impact of nanotechnology on the health, wealth, 

and lives of people will be at least the equivalent of the combined 

influences of microelectronics, medical imaging, computeraided 

engineering and man-made polymers developed in this 

century.” // Richard E. Smalley, 1996 Chemistry Nobel Laureate 

with a tenfold reduced power consumption and eventually even an 

elevator to space, as recently studied by NASA. Nanotechnology will 

also have potentially significant impacts on energy efficiency, storage 

and production. Nanotechnology could help revolutionize the energy 

industry, producing advances in solar power cell technology and the 

development of fuel cells. 

No nanotechnology without the right tools 

In 1981, Heinrich Rohrer and Gerd Binnig at IBM Research Laboratory 

in Zurich developed the scanning tunneling microscope, STM, a device 

that enables researchers to analyze and manipulate matter at the 

atomic scale. This invention laid the groundwork for further advances 

in nanotechnology. Further progression in nanotechnology generated 

a demand for new commercial instruments for routine use in the handling 

of nanostructures and nanodevices. A whole range of tools 

similar to the STM, such as the Atomic Force Microscope (AFM), and 

an entirely new generation of instruments has evolved to support microand 

nanotechnology. The emerging market of tools for nanotechnology 

will play a key role in the development of this industry. 

Do the benefits outweigh potential risks? 

While many believe that the influence of nanotechnology will be a 

universal cure-all, others have serious concerns about its social, 

political and economic effects. A primary fear is the use of nanotechnology 

will generate unwanted side effects, which could harm lives 

and the environment. It is impossible to avoid such effects completely, 

as almost any technology can be abused. However, internal 

control of scientific and technological developments in nanotechnology 

is inherently better than in other fields of high technology. This 

is due to the fact that an interdisciplinary group of scientists and 

engineers are ultimately responsible for their findings. Nevertheless, 

experts predict that governments may soon step in to create laws or 

regulations concerning nanotechnology. 

æ 

Miele’s easy clean ovens 

Oven cleaning is not a favorite 

chore for most people. 

It often gets put off until the task 

takes hours of scrubbing to 

remove burned-on grease. Knowing 

this, Miele has created 

PerfectClean enamel, a material 

treated with nanotechnology 

surface finishing that prevents 

food and grease particles 

from bonding with the oven cavity, 

racks and even its baking 

sheets. Spills also can’t burn on. 

This technology hasn’t abolished 

the need for oven cleaning, 

but made it significantly simpler. 

www.miele.de 

Source: Miele 

Hartchrom’s surface technology 

Hartchrom, Switzerland, and 

Nanogate Coating Systems, 

Germany, developed Nanochrome ® , 

a surface technology that is 

antiadhesive, and corrosion- and 

temperature-resistant. The 

Nanochrome ® coating system has 

been used for web offset printing, 

and resulted in a reduction of 

cleaning effort for the paper guide 

rolls up to 85 percent. In comparison, 

customary paper guide 

rolls must be cleaned after 

333,000 rotations and Nanochrome 

® rolls require cleaning 

after only 850,000 to 1.3 million 

rotations. Nanochrome ® applications 

in other industrial fields, 

such as in paper and foil manufacturing, 

are being developed. 

www.hartchrom.com 

Table 1 

Estimated public funding of nanoscience 

and nanotechnology 

Source: Bundesministerium für Bildung und Forschung 

(in CHF million) 2000 2001 2002 2003 2004 

Europe 240 400 580 850 900 

Switzerland 20 25 25 27 30 

USA 360 500 680 920 1020 

Japan 330 720 900 950 950 

Others 180 250 540 600 650 

Source: Hartchrom, Switzerland



Expert discussion // Nanotechnology has been touted as the panacea for many 

of the world’s ailments, but what are its real capabilities? How much of what has been 

reported in the popular press is speculation, and how many breakthroughs are 

really just around the corner? Four leading experts in the field joined a question and 

answer forum to help us weed the facts from the fiction. 

Editor: Michèle Luderer ⁄ Credit Suisse Publications 

The following discussion was moderated by Arthur Vayloyan, Member of the Credit Suisse Executive Board, Head of Private Banking 

Switzerland, and Maria Custer, biochemist, Credit Suisse Equity Research 

Unraveling the big debate over 

small science 

Arthur Vayloyan: Media articles have written that science has 

the potential to eradicate air and water pollution, eliminate viruses 

and disease, abolish famine and drought, create artificial intelligence, 

mimic the processes of life, and much more! Is this fiction or 

fact? 

Heinrich Rohrer: That is neither fiction nor fact. To date, I have 

not heard such claims from respectable scientists engaged in nanotech. 

That is part of the hype perpetuated by the media. Nanotech 

will provide new solutions that will substantially improve, but not 

eradicate these problem areas. For example, considerably reduced 

friction will significantly reduce wear and save energy, but some 

problems will remain. 

Viola Vogel: Engineering materials and devices at the nanoscale 

will enable us to do far more with far less resources. This is the driving 

force behind miniaturization, as exemplified by various technology 

developments over the last decades. By entering the nanoscale, 

we might find new solutions to old problems, but we will certainly not 

find magical cures. 

Hans-Joachim Güntherodt: These examples are a collection 

of unrealistic hopes. Today, we are still in the state of nanoscience, 

which can also be defined as the beginning or early stage of nanotechnology. 

Nanoscience, with its supportive nature, promulgates 

throughout all of the scientific disciplines. As a result, it will stimulate 

and create new technologies in an interdisciplinary fashion in all of 

these fields. This will greatly impact many industrial branches to the 

benefit of our everyday lives, but as the others have said, it certainly 

will not solve all the problems of our world. 

Maria Custer: How is the public to distinguish between fantasy 

and reality? Particularly when the popular press prints inaccuracies on 

the topic, and science-fiction thrillers, which disparage the technology, 

make the bestseller’s lists? 

Heinrich Rohrer: Science fiction is as old as science. In fact, 

some of what was once considered science fiction has become reality 

sooner than ever anticipated. Scientists, however, can lose their 

credibility not just by making empty promises, but also with hasty



Heinrich Rohrer, Nobel Laureate: “Nanotech should not copy nature, but 

should get inspired by it.” 

Hans-Joachim Güntherodt, Director of the National Center of 

Competence in Research (NCCR), Switzerland: “Switzerland is well positioned 

in this emerging field.” 

rejections. So it is best to let science fiction be and to speak up only 

if science has been discredited. Science has more important things 

to do than crusade against fiction writers. 

Viola Vogel: We scientists have to play a far more active role to 

help society discriminate between science and fiction. 

Hans-Joachim Güntherodt: The responsible sources do have 

an obligation to inform and educate the public and to provide them 

with scientific and experimental facts. 

Maria Custer: In my opinion, experts in biotechnology and 

genetics were too late vin explaining to the public what they are doing 

in their labs. This led to uncertainty and inacceptance of everything 

genetically modified. What responsibility do nanotech experts have 

to clear up the confusion? 

Viola Vogel: Recognizing this dilemma, the United States initiated 

extensive discussions about potential societal and ethical 

implications at the onset and as part of the US National Nanotechnology 

Initiative. A discussion about the societal implications of 

nanotechnology has to be conducted in the framework of international 

economic, medical and environmental challenges. The truth is 

that with the rapidly increasing world population, the worldwide 

competition for resources will become fiercer. Better technologies 

are needed to use our limited resources more efficiently and in better 

harmony with the environment. Furthermore, current technologies 

are not sufficient to stop or reverse the cost explosion in the 

healthcare sector, which might lead to the possibility that patients 

do not get the care they deserve. New solutions need to be found, 

and accordingly we have to invest into new science and technology. 

The public needs to be informed about how, and in what ways, the 

emerging new technologies might contribute to the benefit of mankind. 

At the same time, we have to start asking early about possible 

unanticipated, negative consequences, and how these new technologies 

might be purposely misused. Since so many disciplines are 

meeting at the nanoscale, a differentiated approach involving many 

sectors of society is needed. 

Hans-Joachim Güntherodt: The main concern is about the 

toxicity of nanoparticles. However, nanoparticle research is only a 

segment of the entire field of nanoscience. Regardless, there is no 

doubt that we can learn from biotechnology and genetics, how to 

interact with the public and let them know what we are doing. 

Arthur Vayloyan: Can parallels be drawn between the trend in 

nanotechnology and past trends in other research-intensive or highgrowth 

disciplines, such as biotech or information technology (IT)? 

Rita Hofmann: I believe there are parallels. Biotech and IT 

describe a wide variety of industries and applications, some of them 

winners and some losers. There are also parallels in the promises 

that are made. 

For example, when the laser was invented, it was said that it would 

change the world. It is now very widely used in telecommunications, 

material science physical measures, and in limited medical applications, 

but has fully failed in the general medical and chemical industries and 

many manufacturing industries. Nanoapplications will fill particular 

gaps, but they are not the solution to all of today’s problems. 

Viola Vogel: There are many parallels; however, none of the 

above technologies involve as many disciplines as nanotechnology. 

The exploration of the nanoworld is an endless resource of scientific 

discovery, from the physical sciences to engineering, from chemistry 

to biomedicine. 

This includes the discovery of new physical phenomena and 

quantum effects at the nanoscale, watching and probing the properties 

of single atoms and molecules, exploring how nature engineers 

its materials at the nanoscale, and how biological nanosystems work. 

Concurrently, the nanotech community is asking how to either convert 

these new discoveries into new technologies, or innovate already 

existing technologies. >



Arthur Vayloyan: The nanotech vision includes revolutionizing 

industries, such as health and medicine, chemicals, power and energy, 

transportation, electronics, agriculture, engineering and defense. 

Is the nanotech market going to explode? 

Hans-Joachim Güntherodt : If we remember how the transition 

from radio tubes to transistors or integrated circuits took 

place, what seems to be a revolution today, was evolutionary at 

the beginning. Fifty years ago, when the first steps were being 

taken with transistors, no one predicted today’s use in laptops, 

mobile phones or the Internet. Similar developments have to be 

considered for nanotech. 

Heinrich Rohrer: Nanotech is a term for a wide variety of processes, 

products, and solutions. Its ultimate goal is to perform electrical, 

mechanical, chemical, and thermal sensing, processing, and actuation 

with systems working on the nanometer scale. It will provide 

pervasive bridges between the virtual world of today’s pervasive data 

processing and the real world of action. An important aspect is also 

new materials with special properties due to distinct nanostructures. 

Therefore, it is not one technology, industry, or market – it embraces 

many. The transition will be evolutionary, and revolutionary. Just remember, 

it took 17 years to replace half of the radio tubes by transistors – an 

evolutionary transition. Microelectronics, however, brought the hightech 

revolution. Nanotech is neither about “filling particular gaps,” nor 

“the solution to all of today’s problems”; it is about the vast world in 

between. And, it will revolutionize many branches of industry and, even 

more importantly, create new ones. 

Arthur Vayloyan : In 2000, the US National Science Foundation 

published a report stating that market expectations could reach USD 1 

trillion by 2015. What is your opinion on these projections? 

Rita Hofmann: It depends what is counted as the market. I would 

feel more comfortable with an estimate of 1 percent of goods in world 

trade to be related to nanotechnology. 

Hans-Joachim Güntherodt: It is too early to make statements 

on market expectations in the range of these high volumes. However, 

there are sufficient expectations that Swiss spin-offs, start-ups, and 

other companies will become interested in the field. 

Arthur Vayloyan: Will some trillion-dollar industries be made obsolete, 

or will the transition to nanotechnology be smooth? 

Rita Hofmann: Many big industries have their own nano programs. 

They will probably integrate this new technology into their current structures. 

Hans-Joachim Güntherodt: I believe the transition will be smooth 

and has to follow commercial laws. We can learn from the introduction 

of new technologies in the past. Well-established manufacturers of 

radio tubes focused on other businesses or else were made obsolete. 

Intel is now the new giant in this field. 

Heinrich Rohrer: Obsolete? Hardly. Let’s take the electron microscope 

as an example on a smaller scale. It boosted research, development, 

and the market of the then 300-year-old optical microscopy 

industry. On a larger scale, the power necessary to perform a calculation 

decreased by a trillion times over the past five decades, yet 

the electricity bill for computers and peripheries increased to about 

USD 1 trillion per year. 

Going from the microscale to the nanoscale is a natural continuation 

of miniaturization. For example, a tera-bit in a cell phone will open 

new opportunities for this market, rather than make the cell phone 

market obsolete. Adding nanochemical analyzers and synthesizers to 

transmit fragrance and scent in addition to words, pictures and whatever 

should boost the cell phone market even more. 

Other developments, however, might discontinue because many 

properties and functions change at the transition from condensed 

matter behavior to atomic and molecular properties. A change from 

solid state to molecular components will require novel processes and 

technologies and, therefore, a lot of courage by the industries involved. 

But, it will open new horizons.



Rita Hofmann, Head of Research and Development, Ilford Group, 

Switzerland: “Nanoapplications will fill particular gaps, but they are not the 

solution to all of today’s problems.” 

Viola Vogel, Head of the Laboratory for Biologically Oriented Materials at the 

Swiss Federal Institute of Technology, ETH: “We scientists have to play a 

far more active role to help society discriminate between science and fiction.” 

Maria Custer: What does the change “from solid state to molecular 

components” mean? Are there examples? 

Hans-Joachim Güntherodt: In the past, we observed the 

change from vacuum or radio tubes to transistors, later the field of 

solid-state integrated circuits was introduced. Today, lower dimensions 

in the micrometer range are state-of-the-art. Smaller dimensions 

are not accessible by lithographic processes or limited by 

physical laws. Therefore, in the future transistors might be replaced 

by molecular components. 

Heinrich Rohrer: Molecules are the smallest, nanometer-sized 

functional components. One objective of macromolecular chemistry 

is to synthesize molecules of increasingly complex functionality. In 

many nanotech applications, the electron or ion currents become so 

small that we have to count electrons and ions instead of measuring 

currents. Using molecules as counting components seems to be a 

natural approach, as nature uses them abundantly, for example, molecules 

as adjustable holes for transfer of single ions through cell 

walls. Dreaming of the distant future, molecules are envisaged to 

serve as basic building blocks for self-assembling increasingly complex 

functional units and systems. 

Arthur Vayloyan: Will large, well-established companies control 

the market or is there room for smaller companies and start-ups? 

Rita Hofmann: There is a market now for start-ups, primarily 

in the equipment and medical sector, and in cases where investments 

in very expensive equipment are not needed. However, most 

of the activity will be in traditional industries and with big industrial 

players that invest in nanotechnology. For example, digital manufacturing 

and manufacturing-on-demand use manipulation on a fine 

scale. It is my guess that every major chemical company, every 

electronics company and many manufacturing industries have nanotechnology 

programs. There are also start-up groups in traditional 

industry. 

Heinrich Rohrer: There are opportunities for new companies, 

and they will appear. Just look at the developments in the data processing 

industry since 1960, thanks to microelectronics. 

Hans-Joachim Güntherodt: Today, there are examples of 

activities for both alternatives. Several well-established companies, 

such as IBM, Hewlett-Packard, and Hitachi, hold patents. Some startups 

are also already making profits. The start-ups in the field of scanning 

probe microscopy can all be linked to universities working in this 

field. Therefore, it is hard to speculate on who will control the market. 

Arthur Vayloyan: What are your views on nanotech programs 

in large companies compared with small start-ups coming from the 

academia? 

Rita Hofmann: Start-ups have the disadvantage of having to 

develop new products for markets that might not yet exist to assure 

their living. For example, commercializing a new industrial product in 

my industry can cost anywhere from CHF 4 million to 10 million. This 

covers only technical development, not investing in any infrastructure 

or manufacturing equipment for longer-term sustainability. If startups 

have this kind of money available to them, they have a chance. 

Start-up groups in large companies do not have access to external 

funding. 

Viola Vogel: Not all products derived from nanotechnology are 

targeting new markets. Many start-up companies in the US are targeting 

existing markets with new products. 

Hans-Joachim Güntherodt: I believe the topic of start-ups is 

linked to the academic environment. In large companies, the programs 

are much more focused on the extension of existing products 

towards the advantages of the nanoscale. 

Maria Custer: So, the expectation is that larger companies will 

be the first to successfully introduce nanotech products, and smaller 

companies with great ideas will most likely need to collaborate >

GLOBAL INVESTOR FOCUS Nanotechnology—20 

with larger institutions in order to get access to the needed infrastructure, 

funding and marketing expertise? 

Rita Hofmann: That would be a good approach. For high-tech 

industrial products, the funding requirements are very high (investment 

in safety, manufacturing equipment, research, marketing, etc.). 

This is a heavy burden for start-ups and for existing small enterprises. 

Collaboration among companies is a good solution. 

Hans-Joachim Güntherodt: There are spin-offs, for example, 

that have successfully introduced nanotech products in the field of 

new microscopes. They are making money and do not need venture 

capital. In the chemical industry, larger companies are also realizing 

good profits with nanotech products. 

Viola Vogel: If we can learn from the very recent past, start-up 

companies can have a very competitive edge. Start-up companies, 

for example, drove technical innovations in biotechnology and IT, in 

a major way. Some of these companies grew rapidly and larger companies 

bought others up. This was and is the case at least in the US. 

The overhead of a big company to develop new technologies and 

prototypes is typically higher than for start-up companies. Unless the 

product requires expensive nanofabrication technologies, start-up 

companies can afford the expenses of developing new prototypes 

and products. Many of the nanoproducts that are coming to the 

market today rely on cheaper manufacturing processes, including the 

assembly of specially designed nanoparticles or molecules. 

In order to create an environment in which nanotech start-up 

companies can flourish, they must have access to centralized user 

facilities where they can either analyze the structure and properties 

of their products, can conduct micro- and nanofabrication processes 

if needed, or have access to a well-trained workforce. The 

US government invests heavily across the country in such centralized 

nanotech facilities that are accessible to academic and industrial 

users. Most of those user facilities are housed in academic institutions 

or national laboratories. Furthermore, the regions from which 

the major new biotechnology and IT industries have emerged are 

found in close proximity to prime universities. Investments into prime 

university-based research programs serve as major engines for 

innovation. 

Maria Custer: Do you believe that some really innovative and 

life-changing products will be developed? If we take the cell phone as 

an example, a few years ago it was not thinkable that almost every 

person would need a cell phone. In my view, this changed many people’s 

lives because they can be reached all the time and everywhere. 

Viola Vogel: Talking about life-changing products: in medical 

emergencies, the time delay between taking a patient’s blood sample 

and getting back the results from centralized laboratories often 

exceeds the remaining life expectancy of the patient. Miniaturization 

will soon make it possible to analyze blood and other body fluids on 

the spot, for example at the site of an accident or wherever needed 

through the use of microfluidic devices that contain integrated nanosensors 

and reporters. 

Hans-Joachim Güntherodt: There will be a variety of products 

coming close to these criteria. It might even be that the mobile phone 

will benefit from such a development. 

In biology or medicine, the dimensions of life are more easily 

accessible in diagnostics and therapy by nanomechanical devices in 

development. On the other hand, there is the emerging field of nanotextiles. 

Be aware that there might be unexpected developments 

which today cannot be foreseen. 

Arthur Vayloyan: What regions or countries are in a good position 

to benefit from nanotechnology? 

Rita Hofmann: Asia is well placed to adopt it, because many 

countries are oriented very much towards manufacturing industries, 

compared with social sciences and services, for example. 

Heinrich Rohrer: Europe is positioned as good as the east and 

west. But that is not sufficient. Europe was scientifically leading in



Arthur Vayloyan, member of the Credit Suisse Executive Board and 

Head Private Banking Switzerland: “It is one of our primary responsibilities to 

provide timely, well-founded advice, identify investment trends and new 

markets at an early stage, and to realistically evaluate opportunities and risks.” 

Maria Custer, biochemist, Credit Suisse Equity Research: “Although its 

potential is difficult to assess, the chances that nanotechnology will change 

traditional industries and global economic structures are high.” 

the 20th century – and before. However, Europe missed the three 

major technology developments: microelectronics or microtechnology 

as a whole, computers and informatics, and biotechnology. Let’s 

hope for the best this time. 

Viola Vogel: In terms of governmental investments in nanotechnology, 

Europe, Asia and the US are shoulder to shoulder. The question 

will be how well Europe is prepared to convert new discoveries 

into competitive products. 

Hans-Joachim Güntherodt: Let me focus on Switzerland, 

where Heinrich Rohrer and Gerd Binning invented a major ingredient 

of nanoscience, the scanning tunneling microscope, in 1981. This 

triggered nationwide efforts in the field. Nearly every university and 

other academic institutions are working in nanoscience. In the past 

few years, the Technology Oriented Program (TOP) NANO 21, which 

was created to ensure that Swiss businesses can make rapid use of 

nanometer-based technologies, has tried to promote cooperation 

between academia and industry. In addition, the Commission for 

Technology and Innovation’s nano/micro branch, in collaboration with 

the Swiss Academy of Engineering Sciences (SATW), established a 

transfer college. The National Center of Competence in Research 

“Nanoscale Science” has developed into a center of excellence, and 

a nano curriculum has been started at the University of Basel, where 

a new type of scientist will be educated. All this might further contribute 

to the very good position of Switzerland in this emerging 

field. 

Arthur Vayloyan: What are the short-, medium-, and long-term 

objectives and application areas of nanotechnology? 

Viola Vogel: The availability of nanoprobes and instrumentation 

to visualize and manipulate biological nanosystems will fundamentally 

change our knowledge base in the biosciences, and will contribute 

in a major way to transitioning biology from a descriptive to a 

quantitative science. Beyond providing new insights into how cells 

and organs work, the biggest pay-off for society might come from 

utilizing these quantitative insights combined with advanced imaging 

and analytical technologies for the early detection of diseases and 

their more effective treatment. 

Heinrich Rohrer: In the short term, we can expect nanotechnology 

to be applied to instrumentation and analytics; imaging and 

sensors are examples. Another rapidly growing area deals with nanostructured 

materials. In the medium term, it will be applied to molecular 

components, novel mechanical and chemical components (such as 

holes as gates to count electrons and ions, nanochemistry laboratories 

for in-situ synthesis), simple nanosystems (such as Millipede, 

a novel type of storage device developed in the IBM Rüschlikon 

Laboratory) ; in-situ growth and self-assembly of nanostructures and 

simple components; and the study of complex nanoprocesses (such 

as systems biology of cells ). In the long term, we might see remote 

(wireless) control of autonomous nanosystems and nanorobots, and 

self-assembly of whole nanosystems from nanocomponents (living 

objects are such self-assemblies; however, they are not subject of 

nanotech). 

Arthur Vayloyan: Along with the benefits also come potential 

and perceived risks. For example, there will certainly be public policy 

and social issues, such as safety, health risks, fear of unemployment 

(human labor made redundant by machines that produce better 

machines ), and moral issues (genetic manipulation ) to be considered. 

What are the true negative implications? 

Heinrich Rohrer: Today, we should be better prepared than we 

were when for example DDT and other pesticides, Freons, and dangerous 

chemicals were produced and used. We also recognize that 

it is not just a question of “what?” but also of “how much?” The true 

negative implication of nanotech is – as with other technical 

and social developments – the ever-growing separation of humankind 

into those who can keep up with change and those who cannot and,



as a consequence, into those who have and those who have not. That 

might eventually end up in a revolution of a different dimension. 

Rita Hofmann: At Ilford, we use some nanoparticles in our products. 

Our particles are silica, which is an industrial product used in 

ketchup, tires and much more. It is known to be chemically very benign 

with no special health and safety restrictions. But because they are 

nanoparticles we treat our nanosilica as if it was an unknown and 

potentially harmful compound. Thus lab personnel and workers wear 

protection and open handling is mostly avoided. This is well above any 

legal requirements and in line with other potentially dangerous substances 

that the chemical industry handles. My point is, there may be 

risks, but they can be handled with existing technology. The health 

and safety aspects have to be looked at from the beginning. 

Viola Vogel: A better scientific understanding needs to be 

derived about how nanoparticles might impact human health upon 

entry into the human body. The biggest producers of nanoparticles 

right now, however, are not the nanotech industries, but combustion 

processes. 

Hans-Joachim Güntherodt : The true negative implications 

might be related to the toxicity of nanoparticles. However, there is 

also a challenge to study safety and risk issues and to prevent the 

negative impact on human health. At the NCCR “Nanoscale Science,” 

we also focus on ethical questions and safety issues. The European 

Union Research Program has started a larger study on these topics. 

On the other hand, there are always alternatives to handle nanoparticles, 

not in the air but in liquids, or to build up nanoparticles for 

medicine from peptides, for example. Again, research will be very 

helpful. 

Arthur Vayloyan: Is it foreseeable that governments might soon 

step in to create laws or regulations concerning nanotechnology? 

Viola Vogel: Some aspects of nanotechnology can be handled 

with existing laws and regulations; others need to be carefully 

assessed. The Food and Drug Administration (FDA) in the US, for 

example, regulates substances according to their chemical composition 

but the agency does not yet consider whether there might be 

size-dependencies in their toxicities. 

Heinrich Rohrer: I just hope that they don’t overdo it. Any 

measures taken should focus first on sound consumer attitudes, 

which are worth more than regulations. 

Hans-Joachim Güntherodt : This is a far sounder alternative 

than a moratorium to stop research in the field of nanoparticles, 

which has been suggested by some non-governmental organizations. 

Arthur Vayloyan: Is it, however, safe to say that overall benefits 

of nanotechnology outweigh the risks? 

Heinrich Rohrer: We have to see the benefits outweigh the 

risks. There is simply no way around nanotechnology, be it for a 

sustainable world or be it for the progress of technology at large. 

Viola Vogel : While this will be the case for many or most nanotech-based 

products, the scientific communities together with other 

sectors of society have to be more alert than in earlier developments 

in order to assess potential health risks early in the process. 

Hans-Joachim Güntherodt : The future might show that the 

risks are under control and can be significantly reduced, and that 

nanosciences will undoubtedly benefit mankind. 

æ



Where will nanotechnology lead? // Nanotechnology might be invisible to the naked 

eye, but it is present in many of today’s commercial products. Its effects on our daily 

lives so far have been small, but significant. For example, if you are wearing eyeglasses to 

read this article, chances are that the lenses are covered with a protective, glare-proof 

coating engineered at the nanoscale. In the near future, these minor advances will pave 

the way for more life-changing products. 

Michèle Luderer ⁄ Credit Suisse Publications 

It’s a small, small world 

Even though we can’t see it, nanotechnology is in many of the products 

we use daily. It can be in our cars, personal computers, clothing, 

and even sports equipment. Nanotechnology is an enabling technology, 

which means that while it appears only in a minute “corner” of a 

product, it enhances the product’s functionality, makes it stronger or 

increases longevity. Tennis balls are good examples. Thanks to nanoclay 

coatings that decrease gas permeability, today’s tennis balls last 

five times longer and have more bounce. It has also helped to make 

tennis racquets stronger and more lightweight. Are small wonders 

such as scratchproof car lacquers and lightweight bumpers with 

improved corrosion resistance worth the billions of dollars invested 

by governments into nanoscience research? The proponents say 

support at this early stage is necessary for nanotechnology to realize 

its full future potential. 

With nanoscience research underway for more than 20 years, it 

is already possible to measure the economic impact of some applications, 

according to the United States National Nanotechnology Initiative 

( NNI), a federal research and development program for nanoscale 

science, engineering, and technology. The US Navy, for example, has 

been using air-conditioning gears that have a wear-resistant nanoceramic 

coating in its ships in 2000. As a result, it expects to have 

saved USD 20 million in maintenance costs by 2010. This technology 

will likely be used in the car and industrial machinery industry to 

extend the lifetime of moving parts. The auto industry is already saving 

money by reducing the amount of precious metals used in catalytic 

converters by using nanosized platinum particles. 

Today’s nanotechnology applications do more than save money, 

they also contribute to improved environmental conditions and health. 

For instance, products using nanoparticles that can remove bacteria, 

viruses, and chemicals from water systems are on the market for use 

in large-scale water purification plants, according to the NNI. In the 

medical industry, nanocrystals used in biological imaging for diagnostics 

make the detection of biological activity in cells much easier, 

because they are a thousand times brighter than the conventional 

dyes used in tests, such as magnetic resonance imaging. 

In the near future, the NNI expects the introduction of advanced 

drug-delivery systems, including implantable devices that automatically 

administer medications when needed. It also anticipates a reduction 

in the use of fossil fuels as a result of the introduction of less 

expensive, more efficient solar cells to be used in homes and companies. 

What’s in store for the next decade? Experts say that it’s difficult 

to predict what products will be on the market, but if medical and 

environmental developments continue at this pace, the future looks 

bright. 

æ



Benefit today: Nanoparticle-enhanced 

inkjet photo paper give photo labs a 

run for their money 

The digital revolution of photography has created a need for a new generation of superabsorbent, 

high-quality inkjet paper to keep up with the new photo quality inkjet printers. Traditional 

silver-based inkjet paper suffers from slow drying-time and inferior image quality with 

respect to resolution. With the introduction of nanoparticles to its high-quality inkjet paper, 

Ilford has substantially improved ink absorption. Those problems have been improved sub 

stantially and even high-quality transparent coating becomes available. Ilford Switzerland has 

recognized this potential of nanotechnology very early and, today, is one of the leading brands 

selling nanoparticle-coated photographic inkjet paper of highest quality. / Text: Karl Knop 

Photo: Ilford Switzerland



Benefit today: Nanotechnology mimics 

nature with self-cleaning surface 

structures that repel water and dirt 

Nature is in the lead when it comes to self-cleaning surfaces. Let’s take the lotus flower as an 

example. Its leaves feature a nanostructured surface that repels water. When the droplets roll 

off, they pick up small particles of dirt in a self-cleaning process. German botanist Wilhelm 

Barthlott first explained this phenomenon known as the lotus flower effect. Today, the first 

commercial products such as home and auto paints, roof tiles, window glass, kitchen tools and 

other equipment with dust-sensitive surfaces are appearing on the market. Apart from the 

gain in maintenance convenience, such products contribute to environmental friendliness as 

the use of chemical cleaning agents is reduced. / Text: Karl Knop 

Photo: Nanosys GmbH, Switzerland



Benefit today: The future looks brighter 

with displays 

The generation of light for the past hundred years has been a domain of metals and semiconductors. 

Now, soft organic plastic materials have begun to challenge this position, offering 

increased performance and brighter light. Organic light-emitting diode (OLED) technology is 

composed of several, nanometer-thin layers of polymer materials. They can emit visible light of 

any spectral color, are cheaper to produce, have better contrast, use less power and can be 

deposited on flexible surfaces. OLED screens are about one-third thinner than today’s liquid 

crystal displays (LCD), and don’t need a backlight. Because of their mechanical flexibility, they 

can be attached to curved surfaces, such as the robotic finger pictured above, for illumination 

purposes. So far, smaller gadgets, such as mobile phones, digital cameras and personal digital 

assistants are emitting brighter light thanks to the technology. However, commercial production 

of computer monitors and TVs is still on the horizon. / Text: Karl Knop 

Photos: CSEM Inc, Switzerland



Benefit tomorrow: More precise and 

faster lab results with new diagnostics 

tools 

In medical diagnostics the traditional biochemical testing of body fluids (blood, urine, etc.) is 

a very time-consuming process. At CSEM in Neuchâtel, a revolutionary technology based on 

optical waveguides is currently being developed, which is not only extremely sensitive in detecting 

specific biomolecules but also relatively easy to use. The whole system consists of a disposable 

chip, capable of detecting simultaneously up to nine substances utilizing a small 

table-top reader instrument. The new technique is also suited for other application fields such 

as food quality testing and environmental control. / Text: Karl Knop 

Photo: CSEM Inc, Switzerland



Benefit tomorrow: Nanotechnology 

to shape the fabric of our lives with 

smart textiles 

Textiles are the most common industrial products, which are – in the true sense – closest to our 

bodies. The textile industry is awaiting a revolution by a new class of synthetic fibers and fabrics 

with novel functional properties based on micro- and nanotechnologies. These smart textiles will 

offer higher comfort to the user, exhibit unusual self-cleaning properties, and might even be 

capable of actively adopting to changing environmental conditions, such as temperature, humidity 

and air composition. Sensing elements and components to generate electrical energy might also 

be integrated to power all these functions. / Text: Karl Knop 

Photo: EMPA, Switzerland



Future benefit: Nanotechnology will 

be integrated into many innovations 

that improve our daily lives 

Roof covered with 

photovoltaic paint 

generates electricity to 

produce hydrogen fuel 

Climate sensors 

everywhere 

Home cinema with 

large self-illuminating screen 

based on OLEDs 

Self-cleaning and 

electrically tunable 

transmission windows 

Bedside medical center with 

elementary diagnostics and 

direct link to the doctor 

Variable room 

illumination 

(white, colored) 

integrated in 

surface structures 

Activity-adaptive 

smart clothing 

Highly scratchresistive, 

dustrepellent paint 

Solid-state hydrogen 

storage and fuel cells 

drive electricity 

Self-organized food storage 

helps keep track of stock 

Extrastrong and 

extralight materials for 

high-efficiency cars 

Text: Karl Knop



“Our development inevitably led us to 

nanotechnology” 

The English company Ilford, a 125-year-old 

stalwart, was for decades the undisputed 

market leader in the field of monochrome 

photographic materials. Then the digital 

camera burst onto the scene, triggering the 

inexorable decline of traditional photography, 

which for Ilford UK culminated in insolvency 

one year ago. However, Ilford’s Swiss 

arm – Imaging Switzerland GmbH in Marly 

near Fribourg – took a new and pioneering 

path early on, entering the lucrative and 

growing nanotech printing paper business. 

Rita Hofmann, Head of Development, 

answers our questions. 

Rita Hofmann, Ilford Imaging 

Daniel Huber // When did you first seriously consider developing 

new products in the area of nanotechnology at Ilford Switzerland? 

Rita Hofmann: It must have been about eight or nine years ago. If 

you want to make the kind of transparent layers we need in the field 

of photography, you have to use particles that are way below the 

wavelength of visible light, which puts them in the nanometer 

realm. 

And what makes your high-resolution paper for inkjet printers so 

much better than conventional paper? 

If you use our paper to print out a digital camera picture, it looks like 

and has all the characteristics of a photograph. A layman can barely 

tell the difference between these images and a normal photograph. 

Do you need a particularly good inkjet printer for the job? 

Nowadays, all the standard printers are good enough to deliver the 

full photographic quality. 

Where did the money come from to develop this innovative paper? 

Ilford greatly cut back on research in the traditional photography 

field – which was a bit of a risk because, at the time, it was still our 

main business. Nevertheless, we switched the bulk of research over 

to the new products, which for five years made little contribution to 

our business. In fact, for a long time we had no idea whether we’d 

ever make money from them. 

Why was this R&D work undertaken at Ilford’s Swiss arm? 

Because the Swiss development department was already very 

advanced in this field. We were never involved over here in Ilford’s 

traditional monochrome photographic paper business, we were in 

the color segment, the more complex ILFOCHROME branch. Also, 

we moved away from traditional analog to digital photography relatively 

early on, and ended up concentrating entirely on nonphotographic 

hardcopy technologies. 

How did the development work go? 

From research initially focused on materials that were pretty similar 

to traditional photographic layers, we moved on to seeking materials 

that would absorb ever more quickly with ever finer particles, which 

inevitably led us to nanotechnology. So in that respect we’re no 

futuristic developer of nanotech robots and the like, we just use 

nanochemistry and nanoparticles. 

Why did the Ilford parent company in England miss the new technology 

bandwagon? 

Within the group, we still had the more advanced and more elaborate 

coating technology. Up to the day it closed, the UK site remained 

deeply rooted in its traditional photographic paper business and 

almost exclusively produced photographic materials, so it lacked the 

highly versatile production equipment for elaborate multiple-layer 

processes that we have. And to build the facilities at both sites simul-



“We soon knew that it was possible, 

but the big problem was implementing it 

into production.” // Rita Hofmann 

taneously would have entailed heavy investment within a short period. 

The group didn’t have that kind of money. Besides, the Swiss site 

alone had sufficient capacity to serve the market. 

So was it pure luck that, from the outset, you were the more sophisticated 

site, almost completely removed from the parent company’s 

core business? 

Only to a certain extent. My boss was basically responsible for both 

sites. To put it simply, he was faced with the following dilemma: say 

you have two sports teams, each with their own strengths. What do 

you do? Do you try and make them equally strong, or do you make 

the better team even better and leave the weaker team to its fate? 

He chose the latter, in other words he invested primarily in the site 

that was already more advanced. The other site was to follow when 

capacity was demanded. That was – and very much is – the advantage 

of the Swiss site. From the point of view of long-term success, 

he did the right thing. Of course, the money could have been shared, 

but then we would never have gained the edge we have today and 

certainly wouldn’t be able to work with these materials. 

How much of an edge do you have on the competition? 

There are a handful of other companies active in this field. But at the 

moment we still have the crucial advantage of having a much better 

price-performance ratio, better production facilities and greater knowhow. 

Of course, this gap can be closed pretty quickly with enough 

capital, but right now we’re in a very good position. 

When developing a new product, after basic research comes the 

development stage and then production. At which stage did you enter 

the process at Ilford Switzerland? 

Very early on. We even did some of the basic research. 

How hard was it then to move into production? 

That was the hardest part of all, and took more than four years. 

So the huge potential was soon apparent. The question remained 

how quickly and how efficiently could you move on to production? 

Precisely. It didn’t take us very long to ascertain that we could realize 

the product in the laboratory environment. But the major sticking 

point was how to put it into production. It’s similar to semiconductor 

development: a single semiconductor prototype never took very long 

to realize, but the real challenge was to develop a production process 

with few rejects and high quality demands in terms of error rate. In 

this regard, we have a real edge in know-how. 

So then you were able, in principle, to concentrate on developing and 

producing special nanotech production machines? 

Not many people can afford to spend millions building an entire 

machine from scratch. Besides, we’re not mechanical engineers – we 

deal with chemistry and paper technology. We could sell individual 

processes – but of course we don’t. After all, it is precisely this that 

makes us attractive to potential buyers. 

How important was Switzerland to you as a location? 

It was certainly a factor. People take their work very seriously here and 

are well educated at all levels, which is vital. What’s more, as a center 

of technology, Switzerland isn’t all that big, which means you still have 

that vital personal contact. The research is also of a very high quality; 

Switzerland is right up there, particularly in nanotechnology. But not 

only does Switzerland have the basic research, it also has the engineering 

knowledge to translate that research into a technical product. This 

is frequently lacking in other countries, where there’s often a huge 

divide between great ideas and industrial reality. 

The pioneer days are over, the machines are up and running; now it’s 

about making it all pay. Is it gradually getting boring? 

No, now it’s time for the next step. Thus far, we’ve only applied this 

technology to inkjets, but that has a limited lifespan. There’s no doubt 

that the technology won’t last 150 years like photography; 20 to 30 

years would be nearer the mark. Now we have to make greater use 

of our coating technology for other applications and really push back 

the frontiers. 

Don’t you first have to recoup all of the investment that was made? 

We’ve already written off a lot of the investments; they were part and 

parcel of our history in photography. But that’s the price of admission 

for others who are just starting out. We benefited from the fact that 

a lot was already in place. 

So you can really give free rein to progress. Supposing you were 

bought by a large conglomerate, aren’t you worried that this momentum 

might be slowed down or even lost? 

No. Technology is a key factor in our sale. Why should somebody 

acquire it if they don’t want to exploit it? In fact, it would actually 

benefit us to be part of a larger company. But it would certainly be a 

challenge to maintain momentum and focus in a larger corporation. 

It’s something we have succeeded in doing in the past, as part of 

Ciba-Geigy and International Paper. 

Your research has taken you to a largely uncharted microcosm. Is there 

any way in which these new discoveries give you cause for alarm? 

I don’t buy these science fiction horror stories. As I said before, we’re 

not into developing nanotech robots. That said, we do have to handle 

our very, very fine particles with care. We always treat new and 

unknown substances with the utmost caution. 

But otherwise, I’m not really worried about new nanotech developments 

being misused for some nefarious end. We foster an open 

information policy and dialogue with everyone involved, both within 

and outside the company. 

æ



Investing in nanotechnology is 

its own science 

The burgeoning field of nanotechnology 

promises huge potential in many sectors 

of the economy. Investors who want to 

position themselves in this technology 

must be able to distinguish between 

reality and science fiction. 

Maria Custer / Credit Suisse 

Figure 1 

Performance of quoted stocks with exposure 

to nanotechnology 

Source: Datastream 

260 

220 

180 

140 

100 

60 

20 

Price Index 

05/02 

01/03 

Nano Basket Equal WE 

NASDAQ Composite 

01/04 

01/05 

Many of the nanotech “visions” that reach the public are just 

fantastic ideas without any scientific basis. Nanotechnology is a 

reality today, and the market for products containing nanotech is 

rapidly beginning to emerge. However, due to the heterogeneity 

of this science and the broad range of thinkable applications, it 

is very difficult to estimate the market potential for nanotechnology 

products at this stage. The US National Science Foundation 

estimated in 2001 that the nanotechnology market will reach a 

size of USD 1 trillion annually by 2015. The difficulty in estimating 

the market size begins with the definition of what is nanotechnology 

and what is included in the current nanotech market. Several 

factors, such as time-to-the-market of nanotech products (the 

success of basic products in this area, the success of finding 

applications, the time to scale up products), barriers to entry, 

penetration rates and global economic growth, play an important 

role in the estimates. 

Although its potential is difficult to assess, the chances that 

nanotechnology will change traditional industries and global economic 

structures are high. The better investors understand the 

nanotechnology market at its current early stage, the more they 

will be able to profit from the expected changes. 

Investment case and strategy 

Investing in nanotechnology is not easy because the investment 

landscape is not yet established. Although the number of companies 

with nanotechnology products under development is increasing 

significantly, many of these companies are currently at a very 

early stage and are privately held, financed by governmental 

research funds or venture capitalists. There are a few publicly 

quoted nanotechnology companies, but those expected to achieve 

the largest part of their revenue and profits with nanotechnology 

products have a small market capitalization. This makes it difficult 

to build a nanotechnology investment portfolio without including 

larger, established companies, and those have only limited exposure 

to nanotech. Reflecting this, for the time being, the number 

and size of investment vehicles allowing risk diversification, such 

as nanotechnology funds, are limited. 

In addition, nanotechnology is an interdisciplinary technology 

that can be used in many different industries in contrast to traditional 

industries like pharma, where investors can obtain exposure 

in a single, well-defined part of the stock market. 

We have identified the following approaches to invest in nanotechnology: 

p Large companies with exposure to nanotechnology (for example: 

BASF, Dow Chemical, General Electric, General Motors, Hewlett- 

Packard, Intel, IBM, etc.) 

p Companies that provide equipment and nanomaterials for 

nanotechnology research (for example: Veeco, FEI Company) 

p Smaller companies with high exposure to nanotechnology 

(for example: Flamel Technologies, Nanogen) 

Large companies with exposure to nanotechnology 

Many major global corporations with significant research and 

development operations are investing heavily in the development 

of nanotechnology. This is an effort to keep up with technological



change and to profit from advances in product differentiation and 

manufacturing cost reductions. However, these companies are 

typically large, well established, profitable, and the nanoinvestments 

do not have a material contribution to earnings. As a result, 

the returns coming from this technology are low relative to the 

total profits achieved from non-nanotechnology products. 

Companies that enable nanotechnology research 

Another possibility to invest in nanotechnology is through companies 

that enable research, development and manufacturing process 

by providing the tools and materials needed. For investors 

who believe that this technology will play an important role during 

the next decade, investing in stocks from companies producing 

enabling equipment is a good solution, as this kind of machinery 

will be needed not only for the production of innovative products 

but also for research and development. This approach implies 

higher risks and higher returns from nanotechnology than investing 

in established large corporations. 

Smaller companies with high exposure to nanotechnology 

This third option includes early-stage companies, developing intellectual 

property in nanotechnology, and is the riskiest approach. 

In our view, it is not possible to pinpoint a particular product under 

development that will turn out to be the most successful opportunity 

among hundreds of projects that will most likely fail. 

However, there are a few companies listed with nanotech 

products under development such as Flamel Technologies, a 

company focusing on drug delivery. The company developed a 

nanocarrier for the delivery of proteins called Medusa ® . Medusa 

is a self-assembled polyamino acid nanoparticles system that 

allows the controlled release of peptides and proteins drugs. The 

most advanced product, a second-generation formulation of longacting 

native insulin, is currently in Phase II. 

Another example of quoted companies in this category is 

Nanogen. Nanogen produces hybridization DNA chips where the 

molecules to be analyzed (DNA, proteins, etc.) can be moved 

using electric fields. 

Conclusion: In our view, the best approach for high-risk 

investors who want to profit from this emerging technology is to 

diversify risk, investing in companies of the three categories 

described above. 

æ 

Table 1 

Large diversified companies covered by our research 

Source: Bloomberg, Credit Suisse 

Company Sec. No./Bloomberg Market Cap (USD bn) Nanotechnology focus Sector 

BASF 323600/BAS GR 36.7 Functional surfaces (e.g. self-cleaning properties), nanocubes 

for hydrogen storage, nanostructured materials, etc. 

Chemicals 

Dow 925686/DOW US 43.2 Nanostructured particles, drug delivery, etc. Chemicals 

General Electric 933071/GE US 38.3 Nanotubes, nanowires, nanocomposites, etc. Industrials 

General Motors 933261/GM US 15.1 Nanocomposites, hydrocarbon fuel cells Automotive 

Hewlett-Packard 938718/HPQ US 60.2 Molecular electronics, nanowires, semiconductors, etc. Electrical & Electronics 

Intel 941595/INTC US 144.7 Advanced semiconductor components Electronic Components 

IBM 941800/IBM US 121.2 Microscopy, cantilever sensors, etc. Electrical & Electronics 

Table 2 

Companies supplying tools for nanotechnology 

Source: Bloomberg, Credit Suisse 

Company Bloomberg Market Cap ( USD m) Products 

FEI Company FEIC US 701 Products based on focused charged particle beam technology. Transmission electron 

microscopes, scanning electron microscopes and components 

JEOL LTD 6951 JP 470 Scanning electron microscopes, transmission electron microscopes 

SYMYX SMMX US 832 Automated, integrated workflow systems for research optimation 

VARIAN VARI US 1284 Analytical and research instruments including spectrometers 

VEECO VECO US 438 Equipment for data storage and semiconductor industry


Authors—34 

Heinrich Rohrer // Nobel Laureate . . . . . . . . . . . . . . . . . . . . . . . . . . . 16–22 

Heinrich Rohrer is a Swiss physicist, who invented the scanning tunneling microscope 

(STM) with Gerd Karl Binning in 1981 at the IBM Research Laboratory in 

Zurich. The STM provided the first images of individual atoms on the surfaces of 

materials. For their innovation, they shared half of the 1986 Nobel Prize in Physics 

with Ernst Ruska who invented the first electron microscope in 1931. Rohrer 

studied at the Swiss Federal Institute of Technology (ETH) in Zurich and received 

his doctorate there in 1960. He joined the IBM Research Laboratory in 1963, 

where he remained until retiring in 1997. 

Hans-Joachim Güntherodt // NCCR Nanoscience . . . . . . . . . . . . . . . . . . 16–22 

Hans Joachim Güntherodt has been the director of the National Center of Competence 

in Research (NCCR ), Switzerland, since 2001. The NCCR, an initiative 

of the Swiss National Science Foundation, was established in 1999 with the goal 

of strengthening Switzerland’s position as a research center in strategically 

important areas of science. He has also been a professor at the University of 

Basel since 1974 and acted as rector from 1994 to 1996. In 1999, he was 

named scientific director of the Technology Oriented Program (TOP) NANO 21 

by the board of the Swiss Federal Institute of Technology ( ETH ) and the Commission 

for Technology and Innovation. He also served as director of the Swiss 

Priority Program Micro- and Nanosystems (MINAST) for the board of directors 

of the ETH in 1998. Hans Joachim Güntherodt was educated at the ETH in 

Zurich and received his diploma degree in 1964 and his doctorate degree in 

1967. 

Rita Hofmann-Sievert // Ilford Imaging . . . . . . . . . . . . . . . . . . . 16–22, 30–31 

Rita Hofmann-Sievert is head of Research and Development and a member of 

the board of directors at Ilford Group, Switzerland. She leads a team of more than 

50 scientists, engineers and technical assistants. She has been involved in 

research and applications for the development, color science, image permanence 

and of test methods for inkjet materials for the past twelve years. Rita Hofmann 

received her degree and doctorate in physical chemistry from the University of 

Goettingen, Germany. After postdoctorate studies at the University of Colorado 

and Pennsylvania State University, she joined Ciba-Geigy Basle in 1983 for work 

in laser applications for analytics. In 1985, she became part of the photographic 

division of Ciba, Ilford in Marly, Switzerland. She is also long-time, active member 

of ANSI/ISO subcommittee TC 42/WG5, which is responsible for standardizing 

accelerated archival storage conditions for imaging media and accelerated ageing 

test methods for digital print media. She has served on the board of directors of 

the International Society for Imaging Science and Technology (IS&T) since 

2003. 

Viola Vogel // ETH Zürich . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16–22 

Viola Vogel is a professor in the department of Materials, heading the Laboratory 

for Biologically Oriented Materials at the Swiss Federal Institute of Technology 

(ETH) in Zurich. Her interdisciplinary research program centers in bio-nanotechnology 

where she deciphers engineering principles of biological nanosystems 

for the development of new technologies. This year, along with three other ETH 

researchers, Vogel was awarded the Philip Morris Research Prize for the development 

of molecular nanoshuttles. Prior to her recent move to Zurich, she served 

as the founding director of the Center for Nanotechnology at the University of 

Washington. She also was among the panel of advisors for president Bill Clinton’s 

“Presidential National Nanotechnology Initiative” in 1999 and was the United 

States Representative on the Council of Scientists of the Human Frontier Science 

Program from 2003 to 2004. 

Karl Knop // i4u GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 –15, 24–29 

Karl Knop, chief executive officer of i4u in Zug, Switzerland, is a consultant and 

expert in research, technology and innovation. Prior to starting his own company, 

he was chief scientist at Centre Suisse d’Electronique et de Microtechnique 

(CSEM) from 2001 to 2004. He began working at CSEM in 1997 when the 

Swiss National Laboratory, the Paul Scherrer Institute (PSI ), Zurich, became 

part of the center. From 1991 to 1997, he was head of PSI’s applied solid-state 

division, which included responsibilities from such diverse fields as photovoltaics 

and nanotechnology. During that time, he also taught at the Swiss Federal Institute 

of Technology (ETH ). He was director of the Swiss National Laboratory from 

1986 to 1991. In 1973, he joined the Optics group at Laboratories RCA Ltd. in 

Zurich. Karl Knop is the founding member of the Swiss Society of Nanotechnology, 

and he actively promoted nanotechnology in Switzerland from its beginning 

in the early 1980s, by installing this research topic as a major theme first at PSI 

and later at CSEM. He received a physics diploma in 1967 and his doctorate in 

solid-state physics in 1972 from the ETH.


Authors—35 

Giles Keating // Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 

Giles Keating is a managing director at Credit Suisse Group, where he is Head 

of Global Research and a member of the Investment Committee in Zurich, which 

is responsible for setting the investment strategy for the bank’s discretionary 

clients. An economist by profession, Giles started his career with the Confederation 

of British Industry where he was head of the Economic Forecasting 

department. In 1981, he was a research fellow at the London Business School, 

Centre for Economic Forecasting in London. Giles Keating joined Credit Suisse 

First Boston in 1986 and held various posts including Chief Economist, Global 

Head of Fixed Income Research and Economics, member of Global Fixed Income 

Management Committee and Co-Head of the Pensions Advisory and Structuring 

Group. In 2004, he became Head of Global Research at Credit Suisse in Zurich. 

Giles Keating graduated from Oxford University with a bachelor’s in philosophy, 

politics and economics, and holds a master of science in mathematical economics 

and econometrics from the London School of Economics. 

Arthur Vayloyan // Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16–22 

Arthur Vayloyan is a member of the Credit Suisse Executive Board, and Head of 

Private Banking Switzerland. He has been responsible for Credit Suisse Private 

Banking’s onshore business in Switzerland since late 2002. He also manages 

the offshore business in France, Italy, Germany, Austria, and international locations 

in Gibraltar, Guernsey, Monaco and Luxembourg, as well as collaborating 

with independent asset managers. After joining Credit Suisse in 1992, he 

transferred to Private Banking in 1996. Working in the Latin America market, 

ultimately as Head of the US, Canadian, Latin American, Spanish and Portuguese 

offshore markets. Arthur Vayloyan holds a doctorate in physical chemistry (special 

subject nanotechnology) from the University of Berne, and a master of business 

administration (MBA) from INSEAD in France. 

Maria Custer // Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . 16–22, 32–33 

Maria Custer is a vice president at Credit Suisse, where she has been analyzing 

equity research for the global biotechnology and medical technology industries 

since the beginning of 2005. She joined Credit Suisse as an equity research 

analyst for the healthcare and chemicals sectors in 2001. 

Prior to joining the company, she was a research scientist in the Flavors and 

Fragrances division of Roche. For four years, she worked on projects that included 

the understanding of the basic aspects of the mechanisms of olfaction and 

sensory perception of target odors. Maria Custer began her studies in pharmacy 

and biochemistry in Buenos Aires, and then moved to Zurich, where she completed 

her studies in biochemistry and received a doctorate from the University 

of Zurich in 1994. At the University of Zurich, she held a three-year post-doctoral 

position as a research scientist in the field of nephrology. In 2002, she 

received a bachelor of business administration from the Zurich Graduate School 

of Business Administration (GSBA ). She also completed a financial analyst 

diploma from the Ausbildungszentrum für Experten der Kapitalanlage ( AZEK ) 

in 2003. 

Christian Gattiker-Ericsson // Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . 

Christian Gattiker-Ericsson is a director at Credit Suisse, where he is Head of 

Global Equity Strategy. He began his career as a member of the economics 

department of Swiss Bank Corporation in 1995. At the beginning of 1998, he 

moved to one of the major Swiss investor relations agencies, where he served 

two years as a consultant for stock-market-listed companies in Switzerland and 

Europe. Christian joined Credit Suisse in January 2000 as an equity analyst for 

capital goods, pulp & paper and steel sectors. Since June 2001, he has additionally 

taken over the role of Swiss equity strategist, heading the Swiss market 

team. 

He received an MA in economics and political science from the University 

of Berne in 1995. Christian Gattiker-Ericsson is a CFA charterholder. 

Editorial support provided by Credit Suisse Public Affairs Publications 

Michèle Luderer // Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–15, 16–22, 21 

Michèle Luderer is an assistant vice president at Credit Suisse and an editor in 

the Credit Suisse Public Affairs Publications department. She began working as 

a journalist for the company’s external publications in 2001. Before coming to 

Credit Suisse, she was editor-in-chief of the employee magazine at Zurich Financial 

Services in Zurich. She began working as journalist for various publications 

in Los Angeles after completing degrees in newspaper journalism and German 

at California State University Long Beach in 1996. The American-Swiss moved 

to Zurich in 2000. 

Daniel Huber // Credit Suisse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 – 31 

Daniel Huber is a vice president at Credit Suisse, where he is Head of Public 

Affairs Publications. He has been editor-in-chief of Bulletin, the company’s 

stakeholder publication, since 2002, and its online publication, emagazine, since 

2003. In 2001, he began working at Credit Suisse as an editor in the Private 

Banking communications department. Prior to his career at Credit Suisse, he 

worked as a journalist for the press agency Bärtschi Media, specializing in 

car and motorcycle reporting. In this position, he provided articles from 1995 to 

2001 for reputable Swiss publications including Neue Zürcher Zeitung, Facts, 

Cash and Blick. From 1992 to 1995, he was a sports reporter for the daily 

newspaper St. Galler Tagblatt. He holds a media science degree from the University 

of Zurich.


Imprint—36 

This document was produced by and the opinions expressed are those of Credit Suisse as of 

the date of writing and are subject to change. It has been prepared solely for information 

purposes and for the use of the recipient. It does not constitute an offer or an invitation by or 

on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past 

performance is not necessarily a guide to the future. The information and analysis contained 

in this publication have been compiled or arrived at from sources believed to be reliable but 

Credit Suisse does not make any representation as to their accuracy or completeness and 

does not accept liability for any loss arising from the use hereof. The issuer of the securities 

referred herein or a Credit Suisse Group company may have acted upon the information and 

analysis contained in this publication before being made available to clients of Credit Suisse. 

A Credit Suisse Group company may, to the extent permitted by law, participate or invest in 

other financing transactions with the issuer of the securities referred herein, perform services 

or solicit business from such issuers, and/or have a position or effect transactions in the securities 

or options thereof. 

An investment in the funds described in this document should be made only after 

careful study of the most recent sales prospectus and other fund regulations and basic legal 

information contained therein. The sales prospectuses and other fund regulations may be 

obtained free of charge from the fund management companies and/or from their agents. 

Alternative investments, derivative or structured products are complex instruments, typically 

involve a high degree of risk and are intended for sale only to investors who are capable of 

understanding and assuming the risks involved. Investments in Emerging Markets are speculative 

and considerably more volatile than investments in established markets. Some of the 

main risks are Political Risks, Economic Risks, Credit Risks, Currency Risks and Market Risks. 

Furthermore, investments in foreign currencies are subject to exchange rate fluctuations. 

Before entering into any transaction, you should consider the suitability of the transaction to 

your particular circumstances and independently review (with your professional advisers as 

necessary) the specific financial risks as well as legal, regulatory, credit, tax and accounting 

consequences. 

Neither this document nor any copy thereof may be sent to or taken into the United States or 

distributed in the United States or to a US person, in certain other jurisdictions the distribution 

may be restricted by local law or regulation. 

This document may not be reproduced either in whole, or in part, without the written permission 

of Credit Suisse. © 2005, Credit Suisse 

Publisher 

Credit Suisse 

Global Research 

P.O. Box 300, CH - 8070 Zurich 

Director: Giles Keating 

Editor 

Maria Custer 

Christian Gattiker 

Editorial support 

Michèle Luderer 

Daniel Huber 

Editorial deadline 

May 2005 

Organization 

Bernhard Felder 

Design and concept 

Arnold Design AG 

Urs Arnold, Michael Suter, Daniel Peterhans, 

Monika Isler ( planning and execution) 

Layout 

NZZ Fretz AG, Schlieren 

Printer 

NZZ AG, Zurich /Zollikofer AG 

Translations 

Credit Suisse Group 

Corporate Communications 

Language Services 

Language editors 

text control, Zurich (d, e) 

Credit Suisse Group Corporate Communications, 

Language Services (f, i, s) 

Photographs 

Gee Ly ( 6, 18, 19, 20, 30), Paul A. Souders / 

Corbis (12), Bang & Olufsen (13 ), tec image / 

Science Photo Library (14), Mathias Hofstetter 

( 24, 25, 27, 28, 29) 

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